Malaysia: Budget 2020 Summary
Budget updates (latest from top)
1) Increased allocations for TVET, from RM5.7 billion to RM5.9 billion.
RM738 million to restore dilapidated schools, especially in Sabah and Sarawak.
2) Allocation for maintenance of schools to be increased from RM652 million last year to RM735 million in 2020.
3) Socso protection extended to 18 categories of self-employment including fishermen, own businesses and partnerships.
4) EPF to be extended to contract for service workers and professionals, but on a voluntary basis for a start.
5) Government proposes that minimum wage be increased to RM1,200 in main cities starting 2020.
6) Employment Act 1955 review to include increasing maternity leave to 90 days from 2021, increasing overtime qualification for those earning up to RM4,000 a month, improving sexual harassments complaint system and strengthening provisions against discrimination in jobs according to race, religion or gender.
7) Introduction of Malaysians@Work programme. The programme aims to help four categories of
Graduates: Fresh graduates will be given a RM500 incentive on top of their salaries every month for two years. Their employers will be given RM300 every month throughout the same period.
Women: For women aged between 30 and 50 years, who return to workforce after at least a year will enjoy a RM500 incentive from the government for two years, and RM300 for employers, as well as income tax exemption until 2023.
Local workers: Malaysians replacing foreigners in low-skill jobs to get RM350 or RM500, depending on their sector, every month for two years. Their employers to get RM250 a month during same period.
Apprentices: Extra allowance of RM100 for TVET students. Double tax exemption for companies participating in National Dual Training System for two years. Tax exemptions to companies in Internship programme approved by TalentCorp.
Incentives are courtesy of the Employees Provident Fund. The government hopes create 350,000 jobs for Malaysians in five years, and to stop dependency on 130,000 foreign workers. Total allocation for the Malaysians@Work programme is RM6.5 bilion for the next five years.
8) RM100 million for development of new cable car system at Bukit Bendera.
9) 50% excise duties for locally assembled cars to tour companies that buy new cars.
10) Income tax exemption for organisers of arts and culture activities and international sporting events.
11) RM1.1 billion for the tourism and culture ministry to meet the goals of Visit Malaysia Year 2020.
12) RM524 million to boost R&D in the public sector.
13) RM855 million to promote padi production.
14) RM30 million to boost padi pulut production in Langkawi
15) RM150 million to promote integrated farming.
16) RM152 million for increase in allowance for fishermen, from RM200 to RM250 a month.
17) Increased allocation for agriculture and agro-based industry from RM500 million to RM4.9 billion.
18) RM738 million for Risda and Felda to boost revenue generation.
19) RM810 million for Felda settler welfare.
20) RM200 million in monsoon aid and RM100 million in incentives for rubber production.
21) RM455 million in grants to support the development of Bumiputera entrepreneurs through access to funding, establishment of business premises and training.
22) RM200 million for SME Bank for women entrepreneurs and RM300 million for SMEs.
23) RM10 million for halal industry entrepreneurs.
24) RM500 million under Skim Jaminan Pinjaman Perniagaan for women entrepreneurs.
25) RM20 million for Cradle Fund, for training and grants, and RM20 million for e-sports.
26) RM20 million to MDEC to encourage local players to produce digital content.
27) RM50 million for the development of 5G ecosystems and RM25 million for 5G pioneer programmes.
28) RM200 million for digital infrastructure development at industrial parks and high impact areas.
29) RM250 million to boost internet access in Sabah and Sarawak.
30) RM1.1 billion for similar corridors in Perlis, Kuantan, Johor, Sarawak and Sabah.
31) RM50 million to encourage PPP projects in the special economic zone at the Bukit Kayu Hitam border.
32) RM50 million to improve roads leading to Port Klang.
Source – Free Malaysia Today